RTA offers car parks for bot bid

The Dubai Government is partly privatising multi-storeyed car parks in the emirate with the Roads and Transport Authority (RTA) inviting bids for the first eight.

The move aims at also easing the increasing problem of finding car parking in the city. The eight new locations are spread across the busy parts of the emirate – in Deira, Bur Dubai, Al Ras and Al Naif areas.

The RTA has already invited private companies as well as investors to bid for the car parks under a design, build, operate and transfer (BOT) scheme.

The RTA bids are invited for multi-storey parking of between three and five levels along with basement parking facilities. The successful bidders can operate the facilities for a fixed period of 15 years, after which they will have to be transferred to the authority, which may then lease them back to the original operators or to another operator.

Nasser Hamad Abu Shihab, Director of Strategic Planning Department at the RTA told Emirates Business: "We decided to take this step to give private companies and investors a chance at investment opportunities, as well as to respond to the increasing demand for parking spaces in those very busy areas."

He said there is too much traffic in the areas where the multi-storey car parks are proposed. Therefore, an effort is being made for the benefit of residents and visitors alike who face difficulties finding parking spaces.

"The area is too crowded and seriously lacks adequate parking spaces. The new project should limit this problem. It will also decrease our overhead cost and prove less costly for the government," Abu Shihab said.

Bids will close in September and then the assessment period will follow for four weeks, he said.

Each bidder must submit a bank guarantee of Dh5.6 million to get the bid documents, from a local bank. Bids will be accepted until 10am on September 11. All bids must be sent to the RTA.